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TAX LAW – LAWYER

What is Tax Law?

Tax law is the body of legal rules that defines the State’s right to taxation and the manner in which this right is exercised.

Tax law plays a significant role in the life of every natural person and every legal person, because taxation is connected to and follows not only the individual but also every legal entity, prior to its existence, throughout its lifetime, and after its existence, insofar as its activities give rise to expenditure or generate income or capital.

Moreover, every public-law entity, and in particular the State — as the highest tier of social organisation — in order to achieve its purposes and discharge its mission, resorts to the imposition of taxes and the identification of other resources in order to increase its funds, the revenues from which it will allocate to the operation of public services, the construction of infrastructure works (public works), the provision of social protection to citizens, the defence of the country, education and, generally, the smooth functioning of the State apparatus.

What is substantive, procedural and criminal Tax Law?

a) Substantive tax law regulates the content of the State’s right to taxation, that is, the subject and object of the tax, tax rates, tax exemptions and exceptions, etc. Substantive tax law consists of legal rules applied above all during the administrative stage of the tax obligation.

b) Procedural tax law consists of legal rules applied during the judicial stage of the tax obligation, namely when a tax dispute arises between the taxpayer and the tax authority, and it sets out the procedure for the exercise of the State’s right to taxation and the administration of tax justice.

c) Criminal tax law determines the penalties to be imposed in the event of a tax violation.

What does a Tax Law Lawyer deal with?

A tax law lawyer deals with income taxation, taxation of property and its possession, taxation of inheritances, donations and parental gifts, taxation of expenditure such as customs duties, VAT, special consumption taxes, real estate transfer tax and ship transfer tax, matters relating to the Code of Books and Records (now the Greek Accounting Standards – ELP), and the services provided indicatively concern the following:

  • Criminal handling of tax violations and offences of tax evasion and tax avoidance (income tax, VAT, fictitious and forged tax documents, non-payment of debts to the State, etc.).
  • Defence against tax audits and unlawful practices of the Tax Authorities.
  • Handling of audits based on the “increase” in the assets of the audited persons and substantiation of amounts identified upon the opening of bank accounts.
  • Tax planning and corporate organisation, tax incentives relating to the development of the economic and productive activity of businesses.
  • Legal opinions on tax matters of private parties (natural and legal persons).
  • Representation and support of private parties, legal or natural persons, before the administrative courts or the tax and, more generally, administrative authorities, in connection with disputes arising from acts or omissions of the bodies of the tax administration (administrative appeals, oppositions against acts of administrative enforcement, etc.).
  • Representation before the institutional administrative committees for the out-of-court resolution of tax disputes (Dispute Resolution Directorate, etc.).

What are the sources of Tax Law?

The sources of tax law are:

  1. The Constitution of the State
  2. Formal statutes
  3. Legislative decrees
  4. Regulatory decrees, presidential decrees of legislative content, and
  5. Regulatory acts of the various authorities

How does a tax differ from a fee for services rendered?

a. A tax is imposed on a specific taxable base (property, income or expenditure) and is paid by the taxpayer without any direct and specific consideration on the part of the State.

b. By contrast, fees have a consideration-based character, and their payment is linked to the opportunity for the specific use of a public service or public asset, e.g. municipal cleaning fees, toll fees, postal fees, etc.

How do direct taxes differ from indirect taxes?

A direct tax is a tax imposed on the net profits of an enterprise. That is, a portion of the net profits of the enterprise is paid to the State and collected by it directly, once a year (income tax return).

An indirect tax is a tax imposed on the price of the goods sold by the enterprise and is paid by the consumer; it is subsequently collected by the enterprise and remitted to the State, on a monthly basis for enterprises keeping Class C books or quarterly for small enterprises.

What are the purposes of taxes?

Taxation is a means by which the State, as well as other public-finance bodies, acquires purchasing power in order to cover its monetary expenditure and respond to the multiple duties with which it is entrusted; that is, taxes perform a fiscal function. Beyond the fiscal function, which is also their oldest function, taxes also perform other non-fiscal functions, such as the socio-economic and the socio-political function.

FREQUENTLY ASKED QUESTIONS ON TAX LAW – LAWYER

1. What do I face when AADE imposes taxes and fines on me?

When the tax authority issues an act of corrective tax assessment or an act imposing a fine, the taxpayer is confronted with an enforceable administrative act that may lead to the seizure of bank accounts, real property and salaries. The act is usually accompanied by surcharges, late-payment interest and, in more serious cases, criminal prosecution for tax evasion or non-payment of debts to the State.

Challenging the act is an entirely lawful right. It is important not to assume that the act is final and irrevocable merely because it originates from the Independent Authority for Public Revenue (AADE); tax audits frequently exhibit defects, erroneous application of presumptions or incorrect assessment of bank transactions.

2. What can I do against an act of the tax authority?

The first step is the administrative appeal before the Dispute Resolution Directorate (DED) of AADE, which is a mandatory pre-litigation stage before the judicial route. If the DED rejects the appeal or remains silent, the next step is a judicial petition before the competent Administrative Court of First Instance or Administrative Court of Appeals, depending on the amount in dispute.

In parallel, an application for suspension of enforcement may be filed in order to prevent seizures while the case is pending. In the event of seizures or tax certification, an opposition is filed against the act of administrative enforcement. Each legal remedy carries strict deadlines and distinct admissibility requirements.

3. Within what time-frame must I act after service of an act?

The administrative appeal before the DED must, as a rule, be filed within 30 days of service of the act. The DED responds within 120 days; if this deadline elapses without a response, the appeal is deemed to be tacitly rejected. The judicial petition must be filed within 30 days of service of the DED’s decision or of the lapse of the period giving rise to tacit rejection.

For oppositions against acts of enforcement (individual notice, seizure), a 30-day deadline likewise applies. These deadlines are peremptory, and their expiry leads to inadmissibility of the hearing; for this reason, verification of the date of service is undertaken from the very first meeting with the lawyer.

4. What documents do I need in order to challenge a tax audit?

Essential documents include the audit report, the act of corrective tax assessment or imposition of a fine, the findings memorandum, and the proof of service. In addition, the tax returns of the years in question, clearance statements, E9 declarations, books and records, invoices, receipts and any other accounting records must be collected.

In cases involving an increase in assets and the opening of bank accounts, it is critical to gather bank account statements, evidence of remittances, donations, inheritances, and sales of real property or vehicles, in order to substantiate the lawful origin of the amounts and to rebut the presumption applied by AADE.

5. What are the chances of having the assessment annulled or reduced?

The chances depend on the soundness of the audit and the quality of the supporting documentation. Many acts are annulled for formal defects, such as inadequate reasoning, breach of the right to a prior hearing, lapse of the State’s right by limitation, or incorrect application of indirect audit techniques.

In cases involving an increase in assets, the case-law of the Council of State (StE) has consistently established criteria favourable to the taxpayer where the origin of the amounts is proven. In the criminal dimension of tax evasion, there is the possibility of extinguishing the criminal nature of the act through payment or settlement. Each case is assessed on its own facts, and a carefully crafted legal strategy can substantially reduce the liability.

6. What is the role of the lawyer in a tax dispute?

The lawyer studies the audit report, identifies formal and substantive defects, drafts the administrative appeal and the required pleadings, represents the taxpayer before the DED, the administrative courts and the criminal courts where an offence of tax evasion arises. In parallel, the lawyer applies for suspension of enforcement to prevent seizures.

Ziamparas D. & Associates Law Firm handles tax cases of natural and legal persons, with a specialisation in audits relating to increase in assets, opening of bank accounts, fictitious invoices, VAT and the criminal dimension of tax violations, with the aim of achieving the maximum possible reduction or annulment of the assessment.


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